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Monopsony makes firms not only small but also unproductive

Differences in labour market outcomes between East and West Germany persist, 30 years after reunification. Using high-quality administrative data from Germany, this column documents that East German plants face a steeper size–wage curve than West German ones, invest less in marketing, remain smaller, and, on average, pay lower wages. A model with labour market monopsony,

Understanding the unemployment and welfare effects of the China shock

Concerns about international trade have grown, as recent studies document a negative effect of Chinese import competition on US labour markets. This column provides a new framework to explain this observation, which relies on the presence of downward nominal wage rigidity in US labour markets. The increased competition from China improves US terms of trade, but nominal wage

Symposium -- Day 2 -- **NEW LINK** Distributional Effects of Trade and Trade Policy on U S Workers (332-587)

Symposium -- Day 2 -- **NEW LINK** Distributional Effects of Trade and Trade Policy on U S Workers (332-587)
usitc.gov - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from usitc.gov Daily Mail and Mail on Sunday newspapers.

Symposium -- Day 1 -- **NEW LINK** Distributional Effects of Trade and Trade Policy on U S Workers (332-587)

Symposium -- Day 1 -- **NEW LINK** Distributional Effects of Trade and Trade Policy on U S Workers (332-587)
usitc.gov - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from usitc.gov Daily Mail and Mail on Sunday newspapers.

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